IG Metall CEO opposes merger of Thyssenkrupp and Salzgitter

IG Metall CEO Jörg Hofmann has spoken out against the merger with rival Salzgitter SZGG.DE, which Thyssenkrupp is seeking. “You cannot leverage a troubled corporation through mergers,” Hofmann said in an interview published Monday. He added that Thyssenkrupp was “a problem in itself” that also needed a solution of its own. At the same time, Hofmann made it clear that he would welcome cooperation between steel groups in the transition to climate-friendly steel. This requires government assistance.

“The transition to green steel requires billions of investments, which cannot be done without government support,” said the head of IG Metall. Individual suppliers - be it Saarstahl, Salzgitter or Thyssenkrupp - couldn't do it alone. “I believe that cooperation between steel producers is essential.

Thyssenkrupp has repeatedly advocated the merger of the two largest German steel producers. The traditional Essen company is looking for new strategies to overcome the crisis. Consolidation of heavy industry, which suffers from overcapacity, is urgently needed, emphasized former Thyssenkrupp bosses Heinrich Hiesinger and Guido Kerkhoff. However, their attempt to merge Thyssenkrupp Steel Europe and Indian steelmaker Tata Steel failed due to resistance from the EU Commission. Thyssenkrupp's current CEO Martina Merz leaves all options open in the face of high losses in the steel industry - partnerships, mergers and sales. One argument is that the steel industry will have to increase costs by billions of dollars to move to CO2-free production.

Salzgitter rejects a merger in which Thyssenkrupp sets the terms. This is an option only if a concept is found that also offers the promising advantages of Salzgitter, Salzgitter CEO Heinz Jörg Fuhrmann told the newspaper in July. This has never happened.

The Metalworkers' Industrial Union, which is widely represented among steel producers, is also skeptical about the merger. The union fears a massive layoff if the two companies merge to cut costs.